Tag Archives: mortgage rates

Brexit happened and mortgage Bonds, thus mortgage rates, reacted delivering a great opportunity to homeowners and homebuyers. But what the heck is Brexit and what does it have to do with mortgage rates?

What is Brexit?

Brexit is a term coined from the withdrawal of Britain from the European Union – the British Exit. The people voted last night and the expectation was Britain would remain in the EU. Surprise, surprise…instead, the British walked out, withdrew from the union and … Continue reading →

Mortgage rates are often thought to be directly linked to the Federal Reserve. It’s common for many people to mistakenly think The Federal Reserve actually sets mortgage interest rates. The media contributes to this misunderstanding. But it is incorrect. Mortgage rates are based on the pricing of mortgage bonds which are collateralized by mortgages, known as mortgage-backed securities.

Higher interest rates are here. After a year plus of chatter, the Federal Reserve hiked the Federal Funds Rate yesterday. This was the first rate hike since June 29, 2006 – nearly a decade ago.

The Fed Funds Rate has remained at -0- to 0.25% since December, 2008 when the Fed slashed rates in an attempt to stimulate the economy and boost the housing market. Now, the Fed is unanimous in believing the economy is strong enough to support the … Continue reading →

The mortgage market has been volatile lately and continues to move lower, pushing home loan rates higher. Losing over 100 basis points since Monday’s open, which translates to an increase in home loan rates of approximately 0.25%.

In the past month, mortgage bonds have worsened by over 200 basis points, which means approximately half a point in mortgage interest rates. This could affect the buying power of home buyers who have been pre-qualified or pre-approved at a lower interest … Continue reading →

Mortgage interest rates are typically a hot topic for consumers in the home buying process. In fact, it is often the first question asked of a mortgage professional without consideration of market activity and the discussion of lock versus float. Even more often the mortgage rate is the only decision factor a consumer uses when choosing their home financing lender.

There are other questions and considerations a consumer should be exploring…but that’s another discussion!

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ElizabethRoseBlogs.com is a site that provides information about housing, mortgages, and breaking economic news. The information contained on ElizabethRoseBogs site is for informational purposes only and is not an advertisement for products or services. The views and opinions expressed herein are those of the author. We are not affiliated with the US Government, US Armed Forces or Department of Veteran Affairs. This site is not connected with any government agency. This is not an advertisement to extend consumer credit as defined in Regulation Z.226.2. Consumers are encouraged to consult tax advisors, real estate attorneys, or other relevant professionals regarding their personal circumstances and state regulations.